Wednesday, December 26, 2012

THE STORY
Back about 40 years ago, Wal-Mart had not yet fully cemented
its image as a low cost leader.Other
retailers were still challenging Wal-Mart on price supremacy.One of those chains was TG&Y variety
stores.

TG&Y decided to get into a price war with Wal-Mart.The item chosen to go to war over was a pair
of jeans.TG&Y would lower the price
on jeans and Wal-Mart would retaliate with an even lower price.This pattern continued for many rounds.

Eventually, Wal-Mart dropped the price of jeans to 9 cents a
pair.At that point, TG&Y gave up
and stopped the price war.Wal-Mart had
won supremacy on price, and not too long thereafter, TG&Y ceased to exist.

THE ANALOGY
Yes, 40 years ago, you could buy a lot more for 9 cents than
you can today.But even 40 years ago, 9
cents was an unrealistically low price for a pair of blue jeans.Every jean sold at 9 cents would be a huge
loss for Wal-Mart.But that was the
sacrifice Wal-Mart had to make in order to win the image of price against
TG&Y.

Times may have changed in the last 40 years, but this type
of activity still goes on.Business
leaders understand the value of owning an image and will go to extremes in
order to win that image.This seems
especially true on the internet.

In order to create a large network, internet firms will go
to great lengths to get people hooked into their system.Most end up giving away their product for free.Other go even further by “paying” people to get
on-board, either with badges, coupons or some other form of promotion.It’s hard to make a living if you have to pay
people to use your product.

And it’s not just price where companies go to extremes.Luxury automobile brands are fighting against
each other to own the word “luxury.”They
keep upping the ante by adding ever more exotic features to their automobiles.At some point, even many luxury auto buyers
will balk at paying the premium so that auto makers can get an adequate return
on investment for these exotic features.

For most auto dealers, the maintenance area is among its
most profitable areas, even more profitable than selling cars.But, to increase the luxury treatment
experience, many luxury dealers are throwing in maintenance for free.Now, they’ve cut off a key source of profits.

The world is very competitive.It takes a lot to dramatically own a position
in that competitive market.Every winner
has to go to extremes to own their position, be it in price, luxury, service,
convenience, technological innovation or whatever.It’s as if the whole world is becoming the
equivalent of 9 cent jeans—a world where the only way you can win is to create
a costly, unsustainable extreme.

How do you create a profit if the entry level cost to achieve
a winning position is unsustainably high?That requires a sophisticated strategy.

THE PRINCIPLE
The principle here has to do with what I call the Law of
Extremes.It is one of my 23 laws of
strategy.(I know I said in an earlier
blog that it was 22 laws, but I’ve since added another law.)The law of extremes goes like this:“Creating performance levels needed for
ownership requires trade-offs and subsidies.”

Another way of saying this is that when the core business
can no longer sustain the extremes, you have to:

2)Subtract secondary activities which take away cash from
the building the extreme position (a process called trade-offs).

We will look at each of these separately.

Subsidies

Subsidies are non-core activities or businesses which are principally
done only to fund the core.An example
of this practice is the “Freemium” model used by many internet businesses.The idea is that the core business is
free.Yet in order to afford to give
away the business for free, a small subset (often under 3%) pay a price in
order to get premium extras.In other
words, around 3% of the users of the internet site subsidize the activity of
the other 97% so that the site can make money.Many internet sites use a freemium model like this, including Linkedin
and Pandora.

Another subsidy common on the internet is to use
advertising.If you cannot get the users
to pay for your extreme pricing position of free, then you have to get
advertisers to pay for the site.Another
subsidy example is when internet sites sell information about you to other
business that would pay for that information (watch out when companies put
cookies on your device—it can be their door to a subsidy business selling your
behavior).

This subsidy phenomenon also occurs in the retail
space.In consumer electronics, the
pricing policies are very extreme, often selling the main items near or below
cost.To subsidize these prices, the
retailers need to bundle profitable subsidy purchases to the transaction.A familiar one is the extended warranty,
which is often more profitable to the retailer than selling the item being
insured.Other examples are selling ad
space on the screens of the computers being sold, selling extra ink with the printer,
selling smartphone accessories, and so on.

This is also seen in fast food restaurants where the core
hamburger is sold at a loss and is subsidized by the sales of more profitable french
fries and beverages.(I’ve gotten in the
habit of buying a second burger instead of the fries in order to get a better
extreme value for myself).

The irony here is that in a world of extremes, the core
business becomes almost like a loss-leader for the subsidy add-on businesses.At some point, it’s hard to tell what is the
real core business anymore.IF the
subsidies are where all the profits come from, does that become the new core?The extreme image won with the traditional
core could now be seen as a loss leader positioning to mask the real
positioning, which is to be best at selling the subsidies.

It goes to show that business strategies are getting more
complex.If subsidies are not integral
to your business model, the model may no longer work in a 9 cent jeans world.

Trade-Offs

If subsidies are about adding income to the business, then
trade-offs are about subtracting costs from the business model.The principle behind trade-offs is as
follows.If you try to be all things to
all people, you will probably never obtain an extreme position on anything.For example, if you try to be the highest
quality, lowest priced and fastest in innovation, you will have to make
compromises which will prevent you from being the most extreme in any of these
attributes.There will be specialists focusing on only
price or only quality or only innovation which will be the most extreme and win
the battle for these positions.

Therefore, to win in one space, you may need to stop pouring
money into other spaces, so that more money can be funneled to the space where
you want to win.

An example would be extreme low price “hard discount”
grocers, like Aldi, Save-A-Lot, and Lidl. They have prices substantially below
conventional grocers—extreme enough to win the low price image.Yet those low prices are sustainable because
these firms make trade-offs.They stop
doing many things the conventional operators do which add costs.Examples include:

1)Smaller, Less Costly Assortments (only one brand in one
size per category)

2)Eliminating Lower Margin Branded Goods by Going Direct
to the source to create their own brand.

3)Large reductions in labor by not having service departments,
not stacking products individually on shelves, etc.

4)Lower rent by building smaller stores in less prime
real estate.

By trading away variety, ambiance, convenience, selection
and other such factors, they can divert cash flow from those activities into
sustainable extreme prices.

Southwest Airlines is another example.They make money when other airlines don’t
because they do more trade-offs than traditional airlines.Activities like only selling point to point
tickets, refusing to sell tickets on third party travel websites, focusing on
only one-sized plane, and other non-conventional approaches, they have eliminated
a lot of costs borne by their competitors.This allows them to focus on the things important to their image and
still make a profit.

The idea with trade-offs is that your successes is defined
as much by what you don’t do as by what you do.Your strategy needs to delineate what activities go onto each list (the
do’s and the don’ts).

SUMMARY
In a highly competitive world, it takes extreme levels of
performance in order to win a position.Gaining extreme positions is costly.In order to afford the cost and still make a profit, firms need
strategies about subsidies and trade-offs.Subsidies are the add-on activities which provide extra cash flow beyond
the core.Trade-offs take away
activities which to not reinforce the extreme position in order to provide
extra cash flow to invest in the extreme.

FINAL THOUGHTS
The things which “delight” the customer tend to “deplete”
the cash of the company.To remedy the
situation, the company needs to “destroy” unnecessary costs and “deploy”
subsidy businesses. And that is “de-truth.”

Wednesday, December 19, 2012

THE STORY
I used to live in a city which had a small regional
airport.The city wanted to get more of
the large airlines to land at this airport, but the airlines kept refusing.

The airlines said that they would not schedule flights to
that airport because the runway was too short.Sure, it was long enough to land the smaller planes that the airlines
use, but not long enough to land the largest jets.Because the airlines want flexibility in the
use of their airplane fleet, they didn’t want to schedule flights into airports
which couldn’t handle their largest planes.

After hearing the complaints, the city invested in building
longer runways.And not long after the
longer runway was built, a large 747 jumbo jet landed at the airport in grand
fashion.

I think it was many, many years later before the second
large jet landed there, but it didn’t matter.The renovations and the longer runway resulted in getting more scheduled
flights at the airport.

THE ANALOGY
I like to use the term “landing a strategy.”This concept refers to getting a strategy
from being just a cool idea floating in the clouds to being a reality playing out
on the ground where the company is operating.

Landing a strategy is a lot like landing an airplane.If the airport’s runway is too short, the
larger jet will not be fully landed before it runs out of runway.The plane will keep moving at a high rate of
speed beyond the edge of the runway and crash into something, creating a total
disaster.That’s why airlines insist on
having long runways before committing to an airport.

It takes a lot of time and money to land a strategy (to get
it from idea to reality).If you run out
of time and money before the strategy is fully landed, you are like a pilot in
a big plane that ran out of runway.Your
strategic attempts are about to go off the runway and crash into something,
creating a total disaster.

Due to our optimism, we may think we need a shorter runway
(less time and money) than we really need to land our strategy.As a result, we may already be well into the
strategic transformation before we realize that we are trying to land our
strategy at an airport (i.e., company) whose runway is not long enough (not
enough time or money to finish the transformation).Then we find ourselves frantically trying to lengthen
the runway at the same time our plane (i.e, strategy) is already approaching
the runway.That’s not a very wise approach.

When a strategic transformation runs out of runway, the
worst possible scenario occurs.The old
strategy is bankrupt because all the time and effort and money went into the
transformation.The old strategy is too
obsolete to create sufficient cash flow to keep the transformation going
(running out of money). The time for bankruptcy under the old model keeps
getting closer (running out of time).Yet,
because there is not enough time and money left to finish the transition to the
new strategy, you don’t end up the replacement strategy, either.Instead, you are stuck with neither strategy.A total disaster.

Think about Kodak.It
didn’t start trying to land a digital strategy until the analog business was
almost dead.The old analog business was
not producing cash flow and was soon to die (no time or money).As a result, Kodak’s runway was too
short.They ran out of time and money
before a digital strategy could be landed.The company ran off the runway and imploded.

The airlines in the story had a safer approach.First make sure the runway is plenty long
enough.Then, only after the long runway
is built, will the airlines consider trying land planes there.Our strategic approaches could learn from
this.

THE PRINCIPLE
The principle here is about change management.Nearly all new strategic initiatives require
significant change in the business in order to become reality.You may have a great new strategy, but if you
mis-manage the change process to get there, you will not effectively land the
strategy.It will crash and make a
disaster.

If you cannot
effectively land the strategy, it is irrelevant how great that new strategy
was.It will crash when you run out of
runway, just like a bad strategy.

Therefore, a key piece of change management needs to be
assessment of the length of your runway.If the runway isn’t long enough (not enough time and money), then the
process is doomed.

Option #1
Lengthening the Runway

If the runway is too short, one solution may be to lengthen
the runway.In other words, before
embarking on the transformation, look for ways to either:

Increase Cash Flow; or

Slow Down the Demise of
the Status Quo.

These actions may not have any direct relationship to the
change you are trying to accomplish, but if you do not do them, you will not
have enough time or money to do those things which directly relate to the
change.So you need to do them as well.

Tactics to lengthen the runway could include:

Selling off peripheral assets.

Restructuring the Balance
Sheet.

Massive layoffs in peripheral
areas

Sale and lease-back of
properties.

Looking for legal or
governmental protections of the core to keep threats to the core further
away.

One of the main reasons why Ford Motor Company did not have
to go through bankruptcy and government bailout while GM and Chrysler did was
because Ford had taken many of these types of steps to lengthen their runway
prior to the great recession.As a
result, Ford’s runway was long enough to last until they could transition
through the economic recession and get to their revitalized strategy.

GM and Chrysler ran out of runway because they did not do
enough of these types of things.Without
a lot of outside help, they would have crashed when their runways ran out.

Option #2
Shortening the Plane

If lengthening the runway is not enough, you can try to
switch to a smaller plane.By this, I
mean that instead of trying to create massive change all at once, you can chop
up the change into smaller bundles (like smaller planes) which require less
time and money to land (and thus can use a shorter runway).Those smaller changes with the quickest
payback can be done first and create the new money and extra time needed to
land the rest of the transformation.

Thus, you fund the latter change by strategically creating
funding via the early changes.

Netflix was originally designed to be a digital downloading
service (which is why the company was called Netflix instead of Mailflix).However, the company realized that it would
take massive amounts of time and money to create the Netflix model.Therefore, Netflix started with a smaller
plane (movies by mail).

Movies by mail required less time and money to start up.And it got Netflix a huge subscriber base and
clout in the marketplace that could be applied to the ultimate vision.And because the near-term model was
profitable, it could fund the efforts needed to make the ultimate transition.

Option #3 Changing
the Flight Schedule

A third option is to change the scheduling of your flight—prepare
to land your plane earlier.The idea
here is that if you start the transformation earlier, before the status quo
deteriorates too much, you have many advantages:

The old strategy is
stronger and producing more cash flow to fund the landing.

The company’s image and
clout are stronger which makes it easier to introduce your change to the
marketplace.

The ultimate demise of the
status quo is further away, so you have more time.

Kodak essentially invented the world digital imaging.They had plenty of time, clout and money to
implement the change.The problem was
they waited too long to do anything about it.If they had scheduled the landing of the digital transformation much
earlier, the odds are good that it would have succeeded.

The problem is that companies worry about
cannibalization.After all, the sooner
you start the transformation, the quicker you cannibalize the old core.What you need to realize is that someone is
going to eat your core.Your only real
option is to decide whether you are going to do the eating or someone else is
going to do the eating.And if you wait,
like Kodak did, and let the competition eat your core, you have no runway to
get to the replacement.All you are is
eaten.

SUMMARY
Strategic initiatives usually require change.Change requires time and money (and usually
more than you initially realize).Therefore,
if you want to land your strategy, you’d better make sure there is enough time
and money to get the change implemented.If there isn’t, you will need to adjust your approach to that change by either:

Finding more time and
money;

Starting with smaller
change initiative bundles; or

Starting the whole process
sooner.

FINAL THOUGHTS
I worked with a company that was running out of runway.They did not have enough time or money to
finish their transition.The solution
they picked was to sell the business to someone with deeper pockets and more
time.In other words, they sold the
plane to a company which owned a better airport with a longer runway.So, before you panic, look for creative ways
to get a longer runway.Creative
solutions are out there.

Thursday, December 13, 2012

THE STORY
Back in the very early days of personal computers (before
the IBM PC), there were a lot of small upstart companies that wanted to get
into the business.Most of them said
something like the following:

“We may not be big enough or strong
enough to become the market leader, but we think we can get about a 15% market
share.And that should be large enough
to make a good return on investment.”

The problem with this approach was that:

1)The leaders would already have about 50% of the market
share in personal computers.

2)There were about a dozen firms who wanted to get about
15% share out of the remaining 50% of share available (that math doesn’t work).

As a result, most of these upstart companies only got about
5% share or less.This was insufficient
for profitability and they quickly went bankrupt.

Later, when IBM entered the market with the first “PC” (and
the first software from Microsoft), even most of the market leaders, like Radio
Shack and Commodore, had to give up the business.

THE ANALOGY
If you look at the strategy of most of the early entrants to
personal computing, they were not playing to win.Instead, they were playing to exist.The idea was they did not need to
aggressively pursue superiority in positioning or features.Instead, these companies felt that all they
needed to do was “show up”, and the rapidly growing market would have enough
space to absorb them at about 15% market share.

That approach was a dismal failure.By not playing to win, they ended up with
nothing.When IBM entered the market, it
was aggressively playing to win—and it was the clear winner for quite awhile.

When designing a strategy, are you approaching the market
more like those early entrants (just show up and hope to get sufficient share)
or like IBM (go big and play to win)?

THE PRINCIPLE
The principle here is based on Law #12 of my 22 Laws of
Strategy.This is the Law of Winning,
which says, “If you do not play to win, you will lose.”Playing to win requires:

a)Designing and Achieving a Winning Position (unique,
desirable)

b)Aggressively Pursuing that Position in the Marketplace

c)Developing a business model so that you can have
superiority in your position and still make money.

This is not what those early personal computer manufacturers
did.They built “me-too” products using
similar business models and shipped them out to whomever would buy them.And by not playing to win, they lost.

IBM played to win.They developed a superior product.They installed superior software (MS DOS).They aggressively advertised the brand (to
the point where PC became a generic name for the whole category).They put the full force of IBM behind
it.And they became a winner.

The Rule of 1.5

If anything, the importance of playing to win is even
stronger in today’s economy.One reason
why “playing to exist” no longer works well is due to the rule of 1.5.Back in the 1980’s it was called the rule of
three, which stated that most businesses had 3 strong players:a leader, a close challenger, and a rebel/innovator.The prime example used back then was US
colas: Leader=Coke; Challenger=Pepsi; Rebel/Innovator=RC.

However, over time, this paradigm has mostly
disappeared.The reason can be found in
a 1995 book called the Winner-Take-All Society, by Frank and Cook.The book showed that in industry after
industry, the advantages of leadership were getting stronger and stronger.Challengers were at an ever greater
disadvantage.Brands were beginning to
realize that it made more sense for a challenger to reposition itself as a
leader in different market position than to go directly after a leader.

The net result is what I call the rule of 1.5.Now most markets have a single strong leader
with only minor challengers.Think about
US retailing.Where it used to be Best
Buy vs. Circuit City, it is now only Best Buy.Where it used to be Bed Bath & Beyond and Linens-N-Things, it is now
just Bed Bath & Beyond.And who is
the strong challenger to Walmart or Amazon?

Even in colas, Coke has increased its dominance over Pepsi
to the point where its greatest challenger is now Diet Coke (which leads in a
different position). And RC cola barely
exists anymore (and survives via association with Dr. Pepper, a leader in its own
category of beverages).

That is why you need to play to win, because there is no
guarantee that there will even be room for a profitable number 2 or 3 or
4.Take it from me…when I was working at Best Buy
and founder Dick Schulze was still running the show, there was no doubt that he
was aggressively and passionately playing to win.And win they did.

Metcalf’s Law

If anything, the digital economy with the internet and
social media has accelerated this phenomenon.It was first described as Metcalf’s law, which states that the value of
a network is equal to the square of the number of connections to that network (or
U=y2).

The new digital/social/mobile economy is all about building
networks.And the bigger your network,
the more powerful you are.Look at
Facebook.It did not get its high stock
valuation due to current profits.The
high value was due to Metcalf’s Law and the millions upon millions upon
millions of users in its network.Linked
in and others are also following this principle and building the largest
networks of members in their space.

Once you build up a huge network, there are incentives for
people to join your network and stay in your network. It is referred to as “stickiness.” Hence, the
networking leaders tend to become even stronger leaders and the challengers
become weaker. Who is the major
challenger to Facebook?Can a new
competitor just “show up” and expect to gain a large following in Facebook’s
space?

Part of the appeal of Apple is the network of partners and
features it puts around its products.The apps, the app store, the interface connections, the partnership
deals and so on make the sum of the network greater than the parts, and makes
it harder for any single player to challenge that network.

If you do not play to
win in creating the network, you will ultimately lose in this economy.

SUMMARY
The disproportionate advantages to being the market leader
are huge and getting even stronger.It
is getting to the point where if you are not the leader, you will be hard
pressed to even make an adequate profit.As a result, every business needs a strategy built around leadership—a winning
position in desirable space.In
addition, you need to aggressively pursue gaining and maintaining that
position.Others are also out there
fighting to win, so if you are not equally fighting to win, they will become
the winner instead of you.

Just showing up with a me-too product and hoping that the
market is large enough to get you sufficient market share is no longer a viable
strategy (if it ever was in the first place).Those “just showing up” market shares are never as large as you think
they should be and rarely lead to a viable business model.Be aggressive and play to win or don’t play
at all.

FINAL THOUGHTS
They say that imitation is the sincerest form of
flattery.That may be true, but
imitation is not a very good approach to strategy.Following the leader positions you as a
follower, not a leader.If you do not
have a business model and an aggressiveness to get to a place where you can
lead (or win), then all you have is a blueprint for losing.The world already has a Facebook, Amazon and
Walmart.It doesn’t need an imitation of
them.Instead the world needs new
positions to be conquered.Are you scaling
the mountain of imitation or a mountain where you can be first to the top and
win?

Tuesday, December 4, 2012

THE STORY
I worked at a company where every department in October was
expected to come up with a way to raise funds for the United Way charity.One year, our department decided to sell “Causal
Day” stickers.The idea was that if you bought
and wore one of these stickers, you were allowed to wear casual clothes to work
on that day of the week (not just on Casual Fridays).

We went around the company trying to sell these
stickers.In many departments, we were
unable to get much interest in buying the stickers.However, when we got to the IT department, we
were treated like heroes. The IT people
were buying as many stickers as we had.They
loved the idea of being casual every day and were willing to pay a lot for the
privilege.

We learned from that experience, and in future years we
focused our time in the IT department, so that we were more productive in
selling those stickers.

THE ANALOGY
Even though we all worked for the same company, we had
different levels of demand for Casual Day stickers.Some placed a high value on those stickers,
while others saw little value to them.

This shows the point that not everyone is wired the same
way.Different things motivate different
people.If we try to treat everyone
exactly the same way, we will not get exactly the same results from each
person.What motivates some will de-motivate
others.

For strategic planning to be successful, one needs to go
beyond merely having good ideas.One also
needs to find a way to motivate people to embrace and implement the good
ideas.And since people are motivated
by different things, a one-size-fits-all approach to motivation is not the
optimal way to get a strategy implemented everywhere in the organization.

THE PRINCIPLE
The principle here is that strategic objectives and tactics
do not have to be treated the same way, and in fact should be treated
differently.

Unified Objectives

The overall strategic objectives need to be relatively
unified.This is because a company is
more likely to own a position if everyone in the company is moving in the same
direction to support it.For example, if
your strategy is rooted in low cost, low price, then you need the majority of
the company’s effort moving in the direction of lowest cost and lowest
price.Otherwise, activities counter to
that objective will creep into the company and dilute the objective.

For example, if half the company is pursuing lower cost and
another half is pursuing higher service, then you will probably lose on both
fronts.There will be more focused
competitors winning on the low cost front and other focused competitors winning
on the high service front.As a result,
by having some people trying to win on both fronts, you end up winning on
neither front.

That is why a unified focus is so important for key
strategic objectives.Trade-offs need to
be made in order to win competitive superiority on these objectives.And if the company is not focused on making
the same trade-offs, you will not win your objective. One person’s action will counter another’s
action.This will confuse the customer
as to what you stand for, so you will not really stand for anything.

Diversified
Motivation Tactics

However, just because objectives need to be the same across the
business does not mean that the motivational tools needed to get the objectives
accomplished need to be the same across the business.In fact, as we saw with the Casual Day
stickers, an approach which motivates very well with some areas may be totally
ineffective in other areas.If I tried
to motivate the entire company to meet an objective with Casual Day stickers, I’d
probably get great compliance from the IT department but not from many other
areas.

Therefore, tactics to motivate the larger objective need to
be customized for the particular people being asked to achieve the objective.

Over the years, I have had the privilege of managing a wide
variety of people.At one extreme, I’ve
managed accountants who tend to prefer predictability, rules and the comfort of
routine.On the other extreme, I’ve
managed creative-artistic types who hate predictability, rules and routine.
What motivated one group de-motivated the other.

I learned that I needed different motivations for all the
different types of people I’ve managed over the years.Some were motivated by money, some titles,
some freedom to work on their own pet projects, and some a break from working
on any projects.So the irony is that
the best way to get unified outcomes is to have diversified motivations for the
inputs.

Freedom Vs.
Regulation

Some experts try to frame business issues as an “either/or” argument:either you promote freedom OR
regulation.But business life is not a
unilateral process.For major objectives,
regulation is more desirable; for motivating tactics, freedom is more desirable.

So the question is not Either/OR; the question is
Which/When.In other words, which areas deserve
a particular approach at what times?Yes,
freedom and regulation are both valuable tools.A company using only one approach all the time will sub-optimize.However, using both approaches randomly
sub-optimizes as well.Each has a place
where it is appropriate and where it is not appropriate.Great companies figure this out and use them
appropriately to gain advantage.

I was reminded of this in reading an article put out
recently by McKinsey and Company.In the
article, they talked about the success of an “envelope” approach to getting
things done.The envelope approach works
like this.The envelope represents the
space in which the company wants to operate.The dimensions of the envelope are rigidly defined.You are not to act outside the dimensions of
the envelope.

By contrast, great freedom was given for how an area
operated within that envelope.As long
as an area of the business stayed within the envelope, there were given great
latitude as to how innovate and thrive.This envelope approach has been successful for those firms which can abandon
the either/or approach and embrace which/when.

So, using the McKinsey language, strategic objectives become
the dimensions of your envelope and as long as your motivational tactics fit
inside that envelope, you have great freedom to do what works best in your
area.

SUMMARY
Freedom and rigidity both have their place in business, but
it is not the same place.Rigid
structure is needed to define the major strategic objectives.This same rigid structure needs to hold for
the majority of the business.However,
just because rigid universality is needed for defining the objectives does not
make it appropriate for everything else.When it comes to motivating people to deliver on that objective, usually
the opposite is more appropriate.Great
freedom and diversity tends to get the best effort towards the major objective.

FINAL THOUGHTS
At that same company where I sold Casual Day stickers, our
department would always have a big problem this time of the year.We would try to plan a department Christmas party.About half of the group wanted to make it a
fancy evening affair where we would dress up and bring our spouse.The other half wanted to make it a simple
lunch catered in at the office building (no dressing up, no spouses).The problem was compounded by the fact that
each half tended to hate the preference of the other half.So even within the same department,
motivations and preferences can vary widely.One person’s pleasure can be another person’s torture.So be sensitive to the diversity.

About Me

I have over 25 years of experience, having worked in strategy with a number of leading US retailers. You can learn more about me by visiting my digital resume (www.VisualCV.com/geraldnanninga) of the site for consulting (http://planninga-from-nanninga.webs.com)